Economics 11 Notes for Economics Notes

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Importance of agriculture in Nepal

1. Source of food
Agriculture is determined as main source of food in Nepal. All food and cash crops are grown from agriculture. Agriculture is the mean to survive. We get all required food from it. So, it is a main source of food.

2. Source of raw material
Agriculture is not only source of food but a dominant source of raw material. Jute, sugarcane, tobacco etc. are produced or obtained from agriculture.

3. Employment opportunities
Agriculture is the primary source of employment. According to a report of World Bank about 71.74% of total population depends upon agriculture. The number are 3,831,000 families depending on agriculture as per the 6th agricultural counting from Nepal Government. Thus, almost all farmers are completely engaged in agriculture, making agriculture dominant in agricultural employment.

4. Source of foreign trade
Most of the agro-product is export to foreign or international market. About 60% of agro-product is exported to foreign land. Tea, coffee, woolen clothes, leather jackets etc. are exported which is agricultural products.

5. Increase in Government revenue
Since, 60% of goods exported are obtained from agriculture. So, Government of Nepal includes export tax, tax, registration tax etc. which is the important source of Government revenue.

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